Practise separating own-price movements from supply shifts, applying producer determinants, and tracing how each change affects equilibrium price and quantity.
For an upward-sloping now sell supply curve of dog treats, which of the following is truc?
Selling an additional unit of dog treats will decrease total revenue.
An increase in the price of dog treats will lead to an increase in the supply of dog treats.
An increase in the price of dog treats will lead to an increase in the quantity supplied of dog treats.
A decrease in the price of peanut butter, a: input to dog treats, will lead to a decreas in the quantity demanded for dog treats.
A decrease in the price of chew toys for dogs, a substitute in consumption for do: treats, will lead to an increase in the quantity supplied of dog treats.
Corn is used as food and as an input in the production of ethanol, an alternative fuel. Assume corn is produced in a perfectly competitive market.
Soybeans are produced in a perfectly competitive market. Assume farmers can grow either corn or soybeans on the same land. What happens to the price of soybeans in the next planting season if the price of corn increases? Explain.